PhenixFIN Corporation Reports Q4 2024 Financial Results with Increased Investment Income

PhenixFIN Corporation reported its financial results for the three months ending December 31, 2024, revealing a total investment income of $6.2 million, an increase from $5.7 million in the same period last year. The company’s net investment income for the quarter was $1.6 million, down from $1.7 million year-over-year. The net increase in net assets resulting from operations was $2.5 million, compared to $4.5 million in the prior year, reflecting a decrease in unrealized gains and higher interest expenses.

The company’s total assets rose to $311.9 million as of December 31, 2024, up from $302.8 million at the end of the previous quarter. This increase was primarily driven by a significant rise in investments at fair value, which reached $300.1 million, compared to $227.9 million in the prior quarter. Notably, controlled investments increased to $125.9 million, up from $70.9 million, while non-controlled, non-affiliated investments also saw a rise to $160.3 million from $142.2 million.

PhenixFIN's operational metrics showed a decline in the weighted average basic and diluted earnings per share, which fell to $1.22 from $2.19 year-over-year. The company’s total liabilities increased to $149.2 million, up from $142.4 million, largely due to higher borrowings under its credit facility, which amounted to $84 million as of December 31, 2024. The company’s asset coverage ratio remained above the required 200%, standing at 213.7%.

In terms of strategic developments, PhenixFIN completed the acquisition of approximately 80% of The National Security Group, an insurance holding company, on October 1, 2024. This acquisition is expected to enhance the company’s investment portfolio and operational capabilities. Additionally, the company declared a special dividend of $2.9 million on February 6, 2025, reflecting its commitment to returning value to shareholders.

Looking ahead, PhenixFIN anticipates continued challenges in the market, particularly due to rising interest rates, which could impact both its cost of funding and the performance of its portfolio companies. The company remains focused on maintaining its regulatory compliance as a business development company and aims to leverage its internal management structure to optimize investment opportunities and enhance shareholder value.